Let’s ignore the scenario that I described where you try to take advantage of the single-block calculation time, as i dont think that is what you are concerned about. Instead, let’s imagine a scenario where 33% of the network is minting on a regular basis without you, making nInflationAdjustment=3, but with some random deviation. You have say 1% of the supply, and you are waiting to mint once or twice a year, and you try to time it for maximum profit. The effect your 1% will have on the nInflationAdjustment is somewhat negligible, as it is only 1/33 of the current participation, so you aren’t really concerned with your own participation affecting the system. Rather, you are aiming to speculate for moments when the network is at its lowest participation such that you get the highest reward. You analyze the yearly oscillations and find that, say, May and November are the times when you could make the most. Normally, you would mint in February and October, but you hold off till the mint difficulty is lower to participate.
My question is, what is wrong with this? You are now seeking out moments when the PoS difficulty is lowest in order to participate as a good actor. If anything, this makes the network over all more secure. You are not minting fewer times than you normally would, as you are absolutely convicted to only mint twice a year anyway.
In addition to all this, the compounding interest is increased by a significant amount as the % goes up from 1 to 5, which would discourage these tactics and cause people to mint more often.